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Does anyone have private disability insurance? How much do you have? What does it cost you? I am looking at it for DH and it is $2600/year to age 65 for I believe 85% of income estimated. Did you guys have private policies outside of work.
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I've had private coverage since residency. I currently pay about $3,600/year for $90,000 in coverage. It's not cheap but I got the policies way back when they were very generous with benefits. Today, you couldn't get anywhere near the coverage I've got. They are very, very strict on what sort of disability they'll cover now. They ran into a lot of trouble years ago when doctors started retiring when medicine started going down the tubes. The docs would put in claims for disability even though they were perfectly capable of working but just wanted to get out. After that, the insurers really tightened up the rules but I still have one of those golden old policies. At this point, I don't expect to ever use it but on the plus side, it's a $3,600 bill that will go away when I retire.
And yes, I earn a lot more than 90K now. I never bothered increasing my coverage because the new policies aren't worth it. I also have some coverage through my current job.Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
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Why do you keep the coverage now? Seems you're in a place where you wouldn't even need the payout (and it wouldn't be very impactful to you) if you did become disabled. Not sure how long you've been paying for it, but it's likely you've already given them the policy value in premiums.Originally posted by disneysteve View PostComment
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Good question. This is one of those things that I probably got a bit sloppy with in recent years. Over the past year or so, I've been working to clean up our portfolio, tweak our asset allocation, simplify our finances, etc. Life insurance and disability insurance are on my list to address but I had a bunch of other things I wanted to take care of first. You're right that at this point, I really don't need it. Plus, as I said, my current job provides some coverage but that's only been true the last 3 years. I'm actually not sure how much they cover. I need to check that. It may be enough that my own coverage is superfluous at this point anyway.Originally posted by HundredK View PostSteve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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I have both short term (free) and long term (~$50/month) disability through work. Both covers 60% of my salary. If I can find it I'll post it here. And I have Aflac $50 a month which covers limit injuries (ie, dislocated shoulder, fractures, etc.). And AD & D through work $250,000 (max, if I could get $1 million I would get it but $250,000 is the max). I would like to obtain more disability insurance but not a lot of insurance companies offer it. Mutual of Omaha once I contacted them and specifically told the sales guy that I don't want life insurance rather disability insurance. He was full of baloney and kept insisting it was disability insurance but when I got the paper work it was for life insurance. I contacted a few other places and none offered it. I also wanted to get more AD & D but that too if not offered through your work, good luck trying to find a policy.Comment
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I stand corrected. Long term disability through work is free. It is the short term disability that I'm paying for. Keep in mind for long term disability there is a 24 month waiting period. So I purchased short term disability to cover 104 weeks of coverage. Looking at the chart I'm paying $200 a month (I wish I was paying $50 a month as I mistakenly stated above).Comment
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Other add-ons which I purchased as well, cancer catastrophic illness & 365 custodial care.Comment
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So DH has always been covered through work. We could never buy Disability insurance because he was always covered for free up to 80% post tax. They only cover a set amount. yay new startup. No disability offered so now I'm debating it. But its $2600/year and while I could buy now and protect $8500/month salary in the future I'm not sure it's worth it. I mean we would get "grandfathered" but if the startup doesn't work and he gets a job at a megacorp again then we'll have excessive amounts of disability insurance. More than his salary.Comment
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I'm at work today so I checked my benefits. My long term disability coverage covers 66.6% of my base monthly earnings with a monthly cap of $15,000.
Looks like I really need to drop my private coverage and save myself $300/month.Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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We have never had disability insurance apart from what was offered from work (for DH). I looked into it at one time. I think one of the key points is to get coverage that covers you for the same type of work that you are currently doing (your own occupation).
Also, check and see how the disability insurance coordinates with SS/SSI.
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It would be in the literature. Here is an example of some of the verbiage (of a plan):Originally posted by LivingAlmostLarge View Post
Other income benefits can affect the monthly benefit described in the long term disability coverage section. When calculating the benefit payable, other income benefits that you, your spouse, your children or your dependents are eligible for because of your disability or retirement are taken into consideration.
example:Benefits under the Federal Social Security Act.
Estimate of Other Income Benefits
Aetna will estimate other income benefits for which you appear to be eligible, unless you sign and return a reimbursement agreement to Aetna. The reimbursement agreement includes your promise to repay Aetna for any over payment of benefits made to you as a result of your receipt of other income benefits. If other income benefits are estimated, your monthly benefit will be adjusted when Aetna receives proof:
Of the exact amount paid or awarded; or
That benefits have been denied after review at the highest administrative level.
If estimating your other income benefits results in an underpayment,Aetna will pay you the difference between the underpayment and the benefit payable. If there is an over payment, you must repay Aetna the difference between all over payments and the benefit payable. If Aetna must take legal action to recover such over payment, you also must pay Aetna's reasonable attorneys fees and court costs, if Aetna prevails.
If you apply for Social Security benefits and are denied, you must request reconsideration within 60 days after the denial unless Aetna states, in writing, that you are not required to do so. If the reconsideration is denied, you must apply for a hearing before an administrative law judge within 60 days of the denial, unless Aetna waives this requirement.
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